Question 1

How accurate is this development finance calculator?

Accepted Answer

This calculator provides indicative estimates based on typical market terms. Actual offers will vary depending on your experience as a developer, the specific project location within Wandsworth, planning status, and current lender appetite. We recommend using this as a starting point and then contacting us for a personalised quote.

Question 2

What is Loan to Cost (LTC) in development finance?

Accepted Answer

Loan to Cost (LTC) is the ratio of the loan amount to the total project costs (purchase price plus build costs). For example, if your total costs are £800,000 and the LTC is 70%, the maximum loan would be £560,000. Most development finance lenders in the Wandsworth area offer between 60-75% LTC for experienced developers.

Question 3

What does GDV % mean in the calculator?

Accepted Answer

GDV stands for Gross Development Value — the estimated total sales value of the completed development. The GDV % cap means lenders will not lend more than a certain percentage of the end value. Typically this is 60-65% of GDV. If 65% of your GDV gives a lower figure than the LTC calculation, the GDV cap becomes the binding constraint.

Question 4

Are interest rates really charged monthly?

Accepted Answer

Yes, development finance interest rates are quoted as a monthly percentage, not annually. This is standard across the industry. A rate of 0.65% per month equates to roughly 7.8% per annum. Interest is typically rolled up (added to the loan) rather than serviced monthly, so you do not need to make monthly payments during the build period.

Question 5

What other costs should I budget for beyond this calculator?

Accepted Answer

Beyond the figures shown here, you should budget for: valuation fees (£3,000-£10,000), monitoring surveyor / QS fees (£500-£1,500 per inspection), legal fees for both your solicitor and the lender's solicitor, potential exit fees (0-1%), SDLT (Stamp Duty), professional fees (architects, planning consultants), and a contingency of 5-10% on build costs.

Question 6

Can I use this calculator for projects outside Wandsworth?

Accepted Answer

While the calculator works for any UK development project, the default assumptions and our expertise are specifically tailored to the Wandsworth and South West London property market. GDV projections, build costs, and achievable LTC ratios may differ in other areas. Contact us for guidance on projects in neighbouring boroughs.

Development Finance Calculator

Enter Your Project Details

Get a personalised quote based on these numbers

How to Use This Calculator

Enter your purchase price

Add your build costs

Set your GDV

Adjust finance parameters

Review your results

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